Home > Features > Trolls: Are They For Real? • Bookmark   • Newsletters   • Register Search Options

FEATURE

Trolls: Are They For Real?

Trolls: Are They For Real?

October 20, 2011
Text size: 
View in Digital Mag
Get XBIZ News
XBIZ Research
Will virtual reality boost the paysite market?
Yes, it will soon
  39.88%
Yes, but in a few years
  36.90%
No
  23.21%
Out of 168 votes. Results based on votes submitted by members of XBIZ.net social network.

" Unfortunately, it looks as if we are seeing the tip of the iceberg when it comes to patent trolls. "

FSC has been approached by a number of studios that have received notices from patent companies claiming patent infringement. Patent challenges are becoming an increasing threat to adult online revenues. Non-practicing entities (NPE), i.e. patentees that do not practice their own inventions, are buying up existing patents at an alarming rate and targeting companies that may or may not participate in activity that violates one or more of their patents. These entities are known more widely as patent trolls.

With little to no downside, these patent trolls send notices to or file claims with companies accusing the companies of violating their patent. Often their claims lack substance for a number of reasons. The patent may not apply to the activity of the business; the patent itself may be called into question for obviousness or prior art, meaning that the idea or activity was present before the patent. There are more issues to take into account but suffice it to say this is a complicated issue and the patent trolls are counting on businesses settling rather that paying the exorbitant legal bills that come with fighting.

Unfortunately, it looks as if we are seeing the tip of the iceberg when it comes to patent trolls. Filing frivolous suits against businesses in the name of patent violation has become a business model and is beginning to be an industry unto itself. The small town of Marshall Texas is rife with companies that have rented offices and have filed their business licenses in Marshall for the sole purpose of being able to file suits in this patent-troll friendly town. These patent troll businesses have no staff and no one is in their offices but it is enough to drag an unsuspecting company into a court, in Marshall, Texas.

As your trade association, we at FSC have explored how we can best be of service to our members to be a resource and protect you from this increasing threat. We have spoken with a number of patent attorneys and while this is a complicated issue, there are some basic action steps that can save everyone a great deal of time and money.

The first step is to educate and inform adult businesses of the options available to them if and when they receive a letter claiming patent on their business model. The second is to create an effective system of sharing and networking amongst adult businesses on the subject of patent claims, making attacks on our industry unattractive to potential patent trolls.

FSC is in the process of developing a networking and education program specifically on the subject of patent trolls and patent violation challenges. FSC will not charge additional fees for this program. Nor will FSC encourage our members to take action one way or another. As your trade association it is our responsibility to make sure that our members are well educated and have the best resources available to make sound business decisions for their businesses.

Stay tuned, we will be rolling out networking and educational opportunities on the issue of patent trolls throughout the coming months.


EDUCATIONAL FEATURES

E-Stim Basics: Selling Customers on Powerboxes as Pleasure Tools

Electrosex is a commonly misunderstood pleasure practice for good reason: Most of us have negative associations with electricity; maybe we’ve been shocked after rubbing our feet across a carpeted... More »

Search Oftentimes Is Left to Chance

Adult content is frowned upon in search, whether in paid, organic or social. With the big algo updates from the past few years, Google has cleaned up search, trying to get rid of spammy and low-quality... More »

Five Tips to Generate Repeat Business

A $50 sale is great. But what if you could get that same $50 sale to come back four times in the next few months? Here are some ideas how to achieve that. 1) On your receipts, you should have an option... More »
XBIZ NEWSLETTERS
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.






POPULAR PRODUCTS & SERVICES
Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Access the latest issues of the industry's leading trade publications in digital form. View online or download for offline viewing.

UPCOMING EVENTS

XBIZ 2017

Jan 09 - Jan 13
Hollywood, CA

XBIZ Awards 2017

Jan 12 - Jan 12
Los Angeles, CA

ANME Founders Show

Jan 14 - Jan 15
Los Angeles Marriott Burbank Airport

Everything To Do With Sex Show

Jan 20 - Jan 22
Montréal, Québec
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!